Posted 9/18/2023, 3:54:11 AM
Zombie Firms Rise Again in India, Casting Shadow on Economy
- Zombification of firms rising again in India after temporary decline between 2016-2019
- Zombie firms cast shadow on economy through congestion effects on healthy firms
- India passed bankruptcy law in 2016 to tackle indebted firms but focus faded after Covid-19
- Vodafone and Go Airlines struggling but competitors benefiting from their weakness
- Need to stamp out zombification before next greedflation bout forces policymakers to raise rates